Kenora Airport Authority Inc. Box 469, Kenora ON, P9N 3X5 Phone (807) 548-5377, Fax (807) 548-1460

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Kenora Airport Authority Inc. Box 469, Kenora ON, P9N 3X5 Phone (807) 548-5377, Fax (807) 548-1460 Kenora Airport Authority Inc. Box 469, Kenora ON, P9N 3X5 Phone (807) 548-5377, Fax (807) 548-1460 REQUEST FOR PROPOSAL TO: Aviation Consultants for Development of an Air Service Proposal @ Kenora Airport December 11, 2018 REQUEST FOR PROPOSAL TO: Aviation Consultants for Development of an Air Service Proposal @ Kenora Airport TABLE OF CONTENTS 1 Introduction 2 Scope of Work 3 Scheduling 4 Submittal Requirements 5 Proposal Contents 6 Proposal Evaluation 7 Liability 8 Submission Instructions The Kenora Airport Authority Inc. 1 RFP Commercial Air Service Development at Kenora Airport December 2018 1.0 INTRODUCTION 1.1 Purpose The scope of the work required from the consultant is to provide a rational and comprehensive framework for the development of commercial air service business case proposals. The proposals will support the use of Kenora airport’s new terminal to meet the current and long-term demands of the airport. We are looking to provide commercial air service business cases to specified airlines to attract new commercial scheduled service to and from Kenora. The target airlines include, Porter, Air Canada Jazz, WestJet Encore and Delta/SkyWest. In addition, the project will build upon the data collection efforts that have already been undertaken by the airport authority and will be used in the creation of professionally developed business case proposals. 1.2 Airport Background 1.2.1 Location Kenora is located approximately 490 km (by highway) northwest of Thunder Bay and 210 km (by highway) east of Winnipeg. Kenora Airport is approximately 9.3 km East North East of downtown Kenora. The new terminal (McDougald International Terminal) will be used for the new airlines. 1.2.2 Ownership The Airport was initially developed in 1939. In 1956 it was hard surfaced; and in 1978 the runway was extended to 6,000 feet. Ownership of the airport was transferred to the Kenora Airport Authority from Transport Canada on March 22, 1996 and is currently operated by the Board and receives no funding from the City of Kenora. The Kenora Airport is owned and operated by the Kenora Airport Authority. A volunteer board appointed by the current Airport Authority board of directors, governs the Kenora airport. Presently, the airport board only has 10 (ten) members. The Authority is financially self-sustaining and does not receive any local tax proceeds. We are known as a not-for-profit organization. The Board of Directors – who volunteer their time – meets once a month, on the fourth (4th) Thursday. There is also an annual meeting to review the fiscal year activities and to conduct corporate business. The Kenora Airport Authority Inc. 2 RFP Commercial Air Service Development at Kenora Airport December 2018 1.2.3 Construction History • 1994 – Kenora Airport underwent an airside electrical upgrade for runway lighting, and apron lighting • 2001-2002 – Kenora Airport underwent a runway, taxiway and apron rehabilitation -Runway 08-26 was repaved and Apron 1 was extended as well as Taxi-Alpha through Transport Canada’s ACAP program • 2010-2011 - Due to a severe wildlife issue, the airport installed wildlife fencing around the entire airport with a success rate of 100% (ACAP project) • 2013 - The airport upgraded the Emergency power supply and distribution with a new generator and electrical upgrade (ACAP project) • 2017-2018 – The airport completed its new terminal through various funding sources (Municipal, Provincial, Federal) while simultaneously upgrading all lighting to LED to match the standards set in TP 312 5th edition 1.2.4 Additional Airport Information The critical design aircraft for Kenora Airport has now changed to the Bombardier Q400 with the Aircraft Group Number (AGN) = IV The Kenora Airport has a total land area of approximately 380 hectares, including: Runway 08-26 • 5800 ft. x 150 ft. asphalt surface Two (2) paved taxiways • Taxiway Alpha: connecting runway 08-26 to main Apron 1 for general parking • Taxiway Bravo: private taxiway for MNR Forest Fire fighting base • Main Apron; for parking, main terminal building, Canada Customs, FBO, Ornge air ambulance hangar, 24 hour FSS located on Apron 1, private hangars and Mag Air Services. • Navigational Aids, including Non-Directional Beacon (NDB), Distance Measuring Equipment (DME), Global Positioning System (GPS), Precision Approach Path Indicator (PAPI), and LED lighting. The Kenora Airport is a Transport Canada certified facility meeting the requirements of TP 312 for a Code 3C non-precision approach, AGN IV certified. The Kenora Airport Authority Inc. 3 RFP Commercial Air Service Development at Kenora Airport December 2018 The airport serves Northwestern Ontario, acting as a tourism gateway to the Lake of the Woods, among other attractions. The airport serves approximately 65,000 residents with 16,000 residing within Kenora’s city limits. The airport enplanes approximately 10,000 passengers per year. This number is significantly lower than it should be due to most residents using Winnipeg or Thunder Bay Airports. Currently, one airline provides limited commercial air service to Winnipeg and connecting flights to Thunder Bay. The primary reason for travelers not utilizing the Kenora airport more often is the high cost of ticketing and poor schedules. There is full community and business support for new commercial air service at the airport. We have already collected numerous letters of support from various community partners, including some with significant travel budgets (over $100K per year). The potential benefit for an airline that is willing to invest in Kenora with comparable prices and a reasonable schedule is anticipated to be quite rewarding, garnering full community support. 2.0 SCOPE OF WORK The Air Service Consulting Services agreement may include but is not limited to: AIR SERVICE ANALYSIS 1. Market Definition and Analysis: The Consultant shall be able to define and analyze the Airport’s air service trade area in multiple ways, including but not limited to, a thorough demographic review of the area, including the ability to obtain employment, level of interest, and travel information from the local business community as required. The results of this analysis will be summarized in the Air Service Presentations described below. i. Identification of YQK catchment area ii. Demographics of market users iii. Leakage to competing airports (YWG, YQT, INL) and any others iv. Passenger potential by market v. Airfares at YQK compared to competing airports vi. Comparison of air service at YQK to competing airports The Kenora Airport Authority Inc. 4 RFP Commercial Air Service Development at Kenora Airport December 2018 vii. Underserved markets viii. Top destinations ix. Seat capacity analysis x. Domestic and international traffic demand 2. Route Analysis: The Proposer shall be able to analyze route performance and recommend airlines and routes that would be financially viable, which analysis shall be based on, but not limited to, the following list of considerations: xi. Historic and forecast traffic volumes, service patterns, and seasons. xii. Economic profile of historic and/or current commercial aviation services. xiii. Traffic and revenue forecasts for new operations including total passengers, projected load factors, yield analysis, passenger revenue potential, estimated operating costs and potential route profitability. xiv. Historic and forecast comparative data and analysis showing why the Airport represents a strong opportunity for a targeted carrier to provide service on a specific route. The results of this Route Analysis will be summarized and presented in the Air Service Presentations described below. 2.1 Project Methodology The Consultant will be responsible to provide details on the proposed methods of accomplishing the required work. The proposals to airlines need to differentiate between each airline. Kenora Airport Authority expects the consultant to customize each proposal to the specific airline. 3.0 SCHEDULING It is intended that the work will be completed prior to March 1st, 2019. The consultant will provide a detailed work plan and project schedule. The Kenora Airport Authority Inc. 5 RFP Commercial Air Service Development at Kenora Airport December 2018 4.0 SUBMITTAL REQUIREMENTS Applicants shall organize their submissions in such a way as to follow the submittal requirements listed below. 1) Qualifications and resume of project manager/consultant assigned to this project, including years of experience, list of projects worked on and involvement in those projects. 2) Firm’s expertise in air service analysis, planning, airport marketing or other related airport- consulting services. Include information describing the size of the firm, location of the office that will work directly with the Airport, number of years in business of providing air service consulting. 3) Resumes of key participants, including years of applicable experience, projects worked on and involvement in those projects. Identify whether participant is employed by the firm or will be providing work results under subcontract. 4) Firm profile, including size of firm, staff resources, its principals. Identify which services are provided by outside vendors or contractors. 5) Experience with conducting catchment & leakage studies and content of studies. Provide a recent example of a completed catchment and/or leakage study, preferably from a similar sized market. 6) Briefly explain how you would approach the development of a customized, detailed catchment & leakage study for YQK 7) Explain a
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